Weak On High Volume: VF (VFC)

Trade-Ideas LLC identified VF (VFC) as a weak on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

VF

(

VFC

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified VF as such a stock due to the following factors:

  • VFC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $127.3 million.
  • VFC has traded 921,961 shares today.
  • VFC is trading at 5.69 times the normal volume for the stock at this time of day.
  • VFC is trading at a new low 3.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on VFC:

V.F. Corporation engages in the design, production, procurement, marketing, and distribution of branded lifestyle apparel, footwear, and related products in the United States and Europe. The stock currently has a dividend yield of 2.3%. VFC has a PE ratio of 64. Currently there are 11 analysts that rate VF a buy, 1 analyst rates it a sell, and 6 rate it a hold.

The average volume for VF has been 2.5 million shares per day over the past 30 days. VF has a market cap of $26.8 billion and is part of the consumer goods sector and consumer non-durables industry. The stock has a beta of 0.87 and a short float of 3.9% with 6.68 days to cover. Shares are up 1.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates VF as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.9%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Textiles, Apparel & Luxury Goods industry and the overall market, VF CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 66.19% to -$145.59 million when compared to the same quarter last year. In addition, VF CORP has also vastly surpassed the industry average cash flow growth rate of -101.01%.
  • VF CORP's earnings per share declined by 8.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, VF CORP increased its bottom line by earning $2.86 versus $2.39 in the prior year. This year, the market expects an improvement in earnings ($3.24 versus $2.86).

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